SEATTLE ( TheStreet) -- A new chapter has been written in the Dendreon (DNDN) story. Unfortunately, it's Chapter 11.

The beleaguered prostate cancer vaccine company filed for voluntary federal bankruptcy protection Monday and reached an agreement with holders of $620 million in convertible debt in which the bondholders will receive equity for the debt owed, potentially wiping out current equity shareholders. Dendreon will also try to sell the company. During the restructuring, Dendreon will continue to sell Provenge, the prostate cancer vaccine.

Big mistake. By August 2011, Dendreon had already blown up, announcing a shortfall in Provenge quarterly sales and renouncing long-term sales guidance. The problem wasn't necessarily Provenge's $93,000 price tag but a quirky billing process which put doctors on the hook for the full cost of the prostate cancer vaccine before reimbursement from insurance companies. For this reason, doctors never fully embraced Provenge and sales disappointed. Dendreon wasn't helped by the introduction of competing and more effective prostate cancer therapies from Medivation (MDVN) and Johnson & Johnson (JNJ) .

The company listed debts of more than $664 million and assets of more than $364 million in the bankruptcy filing, cited by Bloomberg.

Ahead of the bankruptcy filing announcement, Dendreon shares closed Friday at 94 cents. The stock has lost 97% of its value since the January 2011 debt offering.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;
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